A new study from Oregon State University says Oregon’s biofuels future remains pretty bright.

This story from the OSU web site says renewable energy, ethanol and biodiesel in particular, will become a $2.5 billion industry in the state over the next 20 years:

“We knew there was a lot of interest in this area and opportunities for growth, but it was very surprising to see how much is already going on,” said Kenneth Williamson, head of chemical engineering at Oregon State University, who coordinated the production of this report.

“It appears the most activity so far has been focused in corn-based ethanol and waste-oil biodiesel production, but we expect the field to broaden beyond that,” Williamson said. “Because electricity from hydroelectric production is so inexpensive in the Pacific Northwest, the production of liquid fuels may continue to be the most promising area, especially in areas like cellulosic ethanol where we have some advantages.”

The study found that if all the proposed bioenergy plants are built, the state would produce 400 million gallons a year of ethanol, 315 million gallons of biodiesel, between 40 and 60 million gallons of cellulosic ethanol, and 150 megawatts of biomass power. Researchers also say public outreach and education is necessary for all of this to come to fruition.

You can see the full results of the study by clicking here.